Possible job losses for residents
Makgoba further stated that the Royal Hotel’s ability to pay its short-term obligations is progressively reducing year-on-year and its current assets are less than its current liabilities, which is a further indication that the hotel is insolvent.
LYDENBURG – The Democratic Alliance (DA) has called on Mpumalanga MEC of the Department of Public Works, Roads and Transport, Mohita Latchminarain, to save 55 jobs by presenting a rescue plan for the 127-year-old Royal Hotel in Pilgrim’s Rest.
According to Sammy Makgoba, the acting CEO of Mpumalanga Regional Training Trust (MRTT), the Royal Hotel could be closing its doors. This will affect its 55 employees.
While responding to the Select Committee on Public Accounts (Scopa) questions, Mr Makgoba stated that the Royal Hotel had incurred a net loss of R770 702 and R3 140 956 for the financial year 2019/20.
There has been a growth of 307 per cent on the net loss year-on-year.
Makgoba further stated that the Royal Hotel’s ability to pay its short-term obligations is progressively reducing year-on-year and its current assets are less than its current liabilities, which is a further indication that the hotel is insolvent.
“The DA warned the then Premier David Mabuza in 2012 of the potential impact that the bid awarding process of leases in Pilgrim’s Rest will have on this historic town’s sustainability, job security of employees, and tourism to the greater Panorama area.
The DA wrote to the former premier and urged him to ensure government’s commitment to the protection of this historical town’s heritage.
“Little was done by the Mpumalanga provincial government to protect this historical town since 2012 and even now the Department of Economic Development and Tourism assisted with the marketing and advertising of Pilgrim’s Rest as well as the provision and installation of notice boards on the roads,” said Bosman Grobler, spokesperson on Select Committee on Public Accounts.
Grobler said although interventions were implemented, they did not yield positive results on the challenges the town of Pilgrim’s Rest faces.
“The DA will in the next sitting deliver a motion without notice asking the house to adopt the motion in which Latchminarain should present a rescue plan for the Royal Hotel and Pilgrims Rest at large,” concluded Grobler.
